GST cut gave a fillip to SUVs, not small cars: Hyundai COO

Hyundai Motor India’s Chief Operating Officer (COO) Tarun Garg said on Tuesday that GST reforms gave a fillip to the sales of SUVs while the share of small cars — hatchbacks and sedans — in overall passenger vehicle (PV) sales continued to shrink, a remark that contrasts sharply with Maruti Suzuki Chairman R C Bhargava’s recent optimism on the segment.

- DEEPAK PATEL

Tarun Garg, COO, Hyundai Motor India

Bhargava had last Friday said that small car sales had surged sharply after the GST rate cuts, adding that the rebound could even push other carmakers to bring hatchbacks back into their product lineups.

Garg, however, said, “There is a narrative going on how the GST cut has impacted car sales... In the January-August period, the share of hatchback in the overall PV industry sales was about 22.4 per cent. In the September-October period, the share of hatchbacks has come down to 20.4 percent.

In just October, their share was just 20 per cent. This is simple wholesale data from industry body SIAM.”

Garg, who is set to become managing director and chief executive officer of HMIL from January 1, was talking to reporters here after the launch of facelift of compact SUV Venue at a starting price of %789,900 (ex-showroom).

He said that even the share of sedans has fallen after the GST rate cuts.